Variable leases under ASC 842: first evidence on properties and consequences

• 成果类型: Article
• 署名作者: Heese, Jonas; Shin, Albert; Wang, Charles C. Y.
• 署名单位: Harvard University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-025-09899-z
• 发表日期: 2025
• 页码: 2218-2263
• 关键词: accounting standards

摘要

The new lease standard (ASC 842) allows firms to keep variable leases off balance sheet, in part based on the assumption that future expenses are difficult to estimate reliably. We show that variable lease expenses are both prevalent and substantial, exhibiting persistence and predictability comparable to operating lease expenses while showing limited sensitivity to revenue changes. These patterns are consistent with variable lease payments being based on stable drivers. Following ASC 842 adoption, firms report lower minimum operating lease commitments and higher variable lease expenses, suggesting a substitution from operating to variable leases. Neither equity betas nor credit ratings reflect potential variable lease liabilities. Conservative estimates show that recognition of variable lease liabilities would increase debt by 7.1% on average. Our findings provide evidence on the properties of variable leases and the potential implications of keeping them off balance sheet.